- Shadow IT is creating business risk and security
challenges - Data sovereignty is a
non-negotiable for Australian
organisations - Containers are the foundation
of modern applications, with AI as the key
driver
Sydney, Australia – March
4, 2026 –
Nutanix (NASDAQ:
NTNX), a leader in hybrid multicloud computing, today
announced the Australian findings of its eighth annual
Enterprise Cloud Index (ECI) survey and research report,
which measures global enterprise progress with cloud
adoption. This year’s report looked closely at the
challenges IT local executives face as they navigate the
rapid increase of AI use and need for application and
infrastructure modernisation in the enterprise.
The
rapid rise of AI adoption in the enterprise over the last
year is forcing a wave of infrastructure modernisation, as
companies race to build and run applications more
efficiently. In fact, containers have become a core
component of the enterprise application strategy with 90 per
cent of Australian respondents confirming AI is accelerating
their adoption of containers to improve speed, reliability,
and scalability.

Alp, Managing Director for A/NZ Nutanix
(Photo/Supplied)
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“It is clear
Australian organisations are ready to embrace AI, but this
requires resilient, dependable, and well-governed
infrastructure. Containerisation has emerged as a
fundamental pillar in local AI and application strategies,
but broader adoption requires a reimagining of the
underlying infrastructure,” said Michael Alp, Managing
Director for A/NZ at Nutanix. “Rather than manage a
two-speed infrastructure stack, a common operating
environment to manage both containerised and traditional
workloads would address key concerns like shadow IT and data
sovereignty.”
Key findings from this year’s
report include:
- Shadow IT is creating AI
challenges and security concerns: 72 per cent of
respondents encounter AI applications or agents being
implemented by employees in non-IT functions. Almost all (92
per cent) of local leaders believe unauthorised AI use
introduces risk, including exposure of sensitive data and
intellectual property. This highlights the need for closer
collaboration between IT teams and business stakeholders to
ensure AI deployments remain secure, compliant, and aligned
with organisational goals. - Organisational
silos create new AI risks: While AI adoption is
driving innovation, it is also introducing operational
challenges. The vast majority (84% per cent) of local
respondents believe silos between business units and IT make
it difficult to effectively execute technology initiatives,
slowing deployment timelines and increasing
complexity. - Agents unlock enormous potential
with organisations: Most Australian IT executives
(70 per cent) also anticipate that AI agents will improve
productivity and efficiency. 62 per cent expect AI agents to
enhance customer or employee experiences. Additionally, some
believe that AI agents can play a deeper role, with 58 per
cent seeing potential for AI agents to create new products,
services, or revenue streams. - Data
sovereignty is non-negotiable: For 89 per cent of
Australian respondents, data sovereignty is a high priority
when making infrastructure decisions – including where to
utilise containers. This is in comparison to 80 per cent
worldwide. More than half (60 per cent) of local leaders
feel the need to run their infrastructure domestically,
whether on-premises or through a local cloud region, largely
due to security or data protection
concerns. - Containers are the foundation of
modern applications, with AI as the key driver:
Organisations are turning to containers to support
AI-enabled workloads and modern application development. 85
per cent of respondents expect the use of containers for
applications to increase over the next three years, while 66
per cent say they are already building new and legacy
applications in containers. Nine in 10 respondents believe
AI is accelerating container adoption which highlights why
enterprises need to evolve their infrastructure strategies
to handle containerised workloads. - The
directive to deploy AI applications comes from the top, but
infrastructure is not ready to fully support it:
Almost half (48 per cent) of respondents anticipate
that their organisation will have more than five AI-enabled
applications in the next three years. Yet if their
organisation needed to deploy AI workloads on-premises, 87
per cent believe their current infrastructure is not fully
ready to support this.
For the eighth
consecutive year, Nutanix commissioned a global research
study to assess the state of cloud adoption,
containerisation, and GenAI application deployment.
Conducted in November 2025 by Wakefield Research, the survey
gathered responses from 1,600 cloud, IT, and engineering
executives with at least a manager-level title. Respondents
represent organisations with 500 or more employees across
Australia, Brazil, France, Germany, India, Italy, Japan,
Mexico, the Netherlands, the Kingdom of Saudi Arabia,
Singapore, Spain, the United Kingdom, and the United
States.
To learn more about the report and findings,
please download the full eighth annual ECI report, here.
About
Nutanix
Nutanix is a hybrid multicloud computing
leader, offering organisations a unified software platform
for running applications and AI and managing data anywhere.
With Nutanix, organisations can simplify operations for
traditional and modern applications, freeing them to focus
on business goals. Trusted by more than 29,000 customers
worldwide, Nutanix helps empower organisations to transform
digitally and power hybrid multicloud environments
consistently, simply, and
cost-effectively.
